Ramtron Revises Fourth-Quarter 2005 Financial Results; Customer Files Bankruptcy Leading to Provision for Bad Debt

COLORADO SPRINGS, Colo.--(BUSINESS WIRE)--March 6, 2006--U.S. semiconductor maker Ramtron International Corporation (Nasdaq:RMTR), a leading developer and supplier of nonvolatile ferroelectric random access memory (FRAM) and integrated semiconductor products, today revised its previously announced financial results for the fourth-quarter and year-ended December 31, 2005.

The revision is related to the recent bankruptcy filing of Iskraemeco, a leading European utility metering manufacturer and Ramtron product customer. Ramtron's fourth-quarter and year-end results, which were released prior to being notified of the bankruptcy, included $157,000 of receivables from Iskraemeco. The company will now make a reserve of $157,000 for provision for bad debts, which will be reflected in the company's Form 10-K SEC filing to be filed mid-March.

The provision reduces income from continuing operation for the fourth quarter of 2005 by $157,000. As revised, loss from continuing operation for the fourth quarter of 2005 was $131,000, or $0.00 per diluted common share, compared with income of $232,000, or $0.01 per fully diluted common share, for the same quarter in 2004. As revised, net loss for the twelve-months ended December 31, 2005 was $2.6 million, or a loss of $0.11 per diluted common share, compared with income of $3.5 million, or $0.15 per fully diluted common share, for the twelve-month period ended December 31, 2004. As revised, net accounts receivable on the company's December 31, 2005 consolidated balance sheet has been reduced $157,000 to $6.2 million.

Ramtron, as a sole source nonvolatile memory supplier for certain Iskraemeco metering products, is taking measures to collect current receivables from Iskraemeco and establish a plan to supply product to the customer under revised payment terms.

About Ramtron

Ramtron International Corporation, headquartered in Colorado Springs, Colorado, is a fabless semiconductor company that designs, develops and markets specialized semiconductor memory, microcontroller and integrated semiconductor solutions used in a wide range of product applications and markets worldwide. For more information, visit www.ramtron.com.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements herein that are not historical facts are "forward-looking statements" involving risks and uncertainties. Since the recovery of foreign accounts receivable depends on factors outside Ramtron's control, our measures to collect outstanding receivables from Iskraemeco may not be successful. Additional risk factors are listed from time to time in Ramtron's reports filed with the SEC. Copies of Ramtron's Forms 10-K, 10-Q, and 8-K, and any other documents are available at no charge at the SEC's website (www.sec.gov), from commercial document retrieval services, or from the company.

        FOURTH-QUARTER AND FULL-YEAR 2005 FINANCIAL HIGHLIGHTS
                 CONSOLIDATED STATEMENTS OF OPERATIONS
     (Amounts in thousands, except per-share amounts) (unaudited)


                                 Three Months Ended     Year Ended
                                 ------------------  -----------------
                                 Dec. 31,  Dec. 31,  Dec. 31, Dec. 31,
                                   2005      2004      2005     2004
                                 --------  --------  -------- --------
Revenue:
   Product sales                 $ 8,577  $  8,826  $ 32,664  $37,231
   License and development fees      179       179       716      717
   Royalties                         175       183       762      765
   Customer-sponsored research 
    and development                   --       230       250      781
                                 --------  --------  -------- --------
                                   8,931     9,418    34,392   39,494
                                 --------  --------  -------- --------
Costs and expenses:
   Cost of product sales           4,374     3,997    15,999   17,078
   Provision for inventory 
    write-off and warranty 
    charge                            19       (29)      876      121
   Research and development        2,255     1,615     7,294    6,209
   Customer-sponsored research 
    and development                   --       212       321      797
   General and administrative      1,201     1,546     4,415    5,100
   Sales and marketing             1,398     1,537     5,029    5,394
   Write-off of in-process
    research and development          --        --     1,067       --
   Write down of debt discount 
    and loss on extinguishment        --        --     1,624       --
                                 --------  --------  -------- --------
                                   9,247     8,878    36,625   34,699
                                 --------  --------  -------- --------
Operating income (loss) from
 continuing operation               (316)      540    (2,233)   4,795
Interest expense, related party       --       (81)     (162)    (410)
Interest expense, other             (113)     (226)     (592)    (899)
Other income, net                    298        18       345       45
                                 --------  --------  -------- --------
Income (loss) from continuing
 operation before income tax 
 provision                          (131)      251    (2,642)   3,531
Income tax provision                  --       (19)       --      (74)
                                 --------  --------  -------- --------
Income (loss) from continuing
 operation                          (131)      232    (2,642)   3,457
Income (loss) from discontinued
 operations                          100       105    (3,849)     145
                                 --------  --------  -------- --------
Net income (loss)                $   (31) $    337  $ (6,491)$  3,602
                                 ========  ========  ======== ========
Net income (loss) per common
 share:
    Basic:
      Income (loss) from
       continuing operation      $  0.00  $   0.01  $  (0.11) $  0.15
      Loss from discontinued
       operations                   0.00      0.00     (0.17)    0.01
                                 --------  --------  -------- --------
      Total                      $  0.00  $   0.01  $  (0.28) $  0.16
                                 ========  ========  ======== ========
    Diluted:
      Income (loss) from
       continuing operation      $  0.00  $   0.01  $  (0.11) $  0.14
      Loss from discontinued
       operations                   0.00      0.00     (0.17)    0.01
                                 --------  --------  -------- --------
      Total                      $  0.00  $   0.01  $  (0.28) $  0.15
                                 ========  ========  ======== ========
Weighted average common shares
 outstanding
    Basic                         24,388    22,306    23,089   22,238
                                 ========  ========  ======== ========
    Diluted                       24,388    23,517    23,089   23,528
                                 ========  ========  ======== ========


                   RAMTRON INTERNATIONAL CORPORATION
              YEAR-END 2005 AND 2004 FINANCIAL HIGHLIGHTS
                      CONSOLIDATED BALANCE SHEETS
                  (Amounts in thousands) (unaudited)

                                             December 31, December 31,
                                                 2005         2004
                                             ------------ ------------

ASSETS
Current assets:
     Cash and cash equivalents               $     3,345  $     6,384
     Accounts receivable, net                      6,234        7,061
     Inventories                                   7,118        4,580
     Other current assets                            857          434
     Assets of discontinued operations                --        6,421
                                              -----------  -----------
Total current assets                              17,554       24,880

Property, plant and equipment, net                 4,732        3,970
Goodwill, net                                      2,008          585
Intangible assets, net                             8,310        3,792
Other assets                                         212          426
                                              -----------  -----------
Total assets                                 $    32,816  $    33,653
                                              ===========  ===========

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
     Accounts payable                              3,841        2,915
     Accrued liabilities                           1,084        2,662
     Deferred revenue                              1,142        1,350
     Current portion of long-term debt             1,354          250
     Liabilities of discontinued operations           --        1,384
                                              -----------  -----------
Total current liabilities                          7,421        8,561

Long-term deferred revenue                         3,764        4,986
Long-term debt                                     7,137        4,914
                                              -----------  -----------
Total liabilities                                 18,322       18,461

Stockholders' equity                              14,494       15,192
                                              -----------  -----------
                                             $    32,816  $    33,653
                                              ===========  ===========